Saudi banks downgraded by Fitch

Due to an unstable economy, falling oil prices and the impact of the coronavirus, Saudi banks are struggling in maintaining profitability and credit ratings. Eight Saudi banks had their long-term Issuer Default Ratings revised from stable to a “negative rating by credit rating agency Fitch, according to a report in

Despite the change in ratings, Fitch said Saudi can support the banking system, although the banks’ net interest margins will remain under pressure.

Seven out of 10 banks reported a decline in NIM, and interest rates are at a system-wide low.